To create an e-commerce website, there are few ways:
- Develop an e-commerce application from scratch.
- Use a hosted e-commerce software.
- Use a ready to use downloadable / installable e-commerce application.
First one takes so much time & resources which is not suitable for many people.
Second one has both positive & negative points. The biggest negative points are: you’ll be limited with the presented features & it’ll probably be paid.
Third one, you won’t be getting professional support which is the bad part but will have a community to ask questions & get answers. Also, considering the software is open source, there will be lots of users improving the product (& may be you).
Here are 16 powerful and open source e-commerce applications:

This powerful e-commerce software has very strong features both at the user & the admin level.
It is multilingual & also supports multiple stores to be managed from 1 admin interface which is unique.
It has lots of marketing/promotion methods to make sales easier like "buy 1 get 1 free" or "multi-tier pricing for quantity discounts" & almost any other possibilities you can imagine.
Magento is integrated with PayPal, Google Checkout and many other e-payment systems.
The system works with PHP and uses MySQL as the database.

An open source ASP.NET e-commerce application that uses MSSQL 2005 as the database.
dashCommerce is multilingual & totally customizable with the theming support.
PayPal & a simple weight-shipping calculation provider is integrated by default.
Unlimited categories can be created & unlimited images can be added to a product (thumbnails are auto-created).
If you’re looking for an ASP.NET shopping cart then you don’t have too many options & this is a great piece of software.

Ubercart is an e-commerce platform for Drupal.
It is a feature-rich application that can sell physical goods, file downloads and even site access/memberships with auto-renewals.
It is installed as a module to Drupal & this makes it stronger as this makes it combined with one of the best CMS applications.
Ubercart works with many payment systems like Cyber Source, Authorize.net, PayPal & more.
Products can be imported/exported via XML & single page checkout feature makes shopping easy.
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